If you are a tax-paying citizen of the country, then you must be aware of the concept of Income Tax Returns, i.e. ITR. These returns depend upon the pay scale under which your income comes. Recently, there have been some changes made by the government for the ITR filing in India, on 30th March 2022. The forms which are filled to pay for the Income Tax Returns, and ITR Filing are the documents that you should be informed about.
Not many changes were done but the small ones done are also important. With these changes, the income office will know more about the additional secondary adjustments, employee stocks, as well as Provident Fund exceeding the limit of the taxpayers.
The few changes that have been made in the ITR filing in India are as follows:
Deemed Dividend For Separate Reporting :
Under Section 2 (22)(e) there is an addition of the deemed dividend in the Other Sources schedule. It means that the income taxpayers will have to inform about the other dividends related to the income which will be inspected under close scrutiny by the income officer. As this will be a consensual release by the taxpayers themselves.
ESOP:
Employee Stock Ownership Plan, commonly known as ESOP has also seen slight changes in the ITR forms. Under act for the cases of deferred ESOPs due to extended timelines, the amount that stands deferred will be mentioned in detail in a new section in the ITR filing in India. But if the employee does not continue the employment between the exercise date and the transfer date, then the amount deferred will not convert into tax payment. In such situations, a tax officer is likely to ask questions from the taxpayer.
Additional Economic Presence:
In the new ITR filing in India, the taxpayers will have to inform about any new significant economic presence in their income. These new additions may or may not affect the number of profits earned by the taxpayer. As the profits are directly affective to India, these details will be looked after with scrutiny by the income tax officers for such candidates in their ITR Filing.
Secondary Adjustment Specific Mention:
For the additional amount, the taxpayers have to pay for their upcoming tax returns, a new section has been made in the ITR filing in India forms. This space will have to be filled by the taxpayers regarding the secondary adjustments that have been made in their incomes which will be then tallied by the income office. It is done so that the income office can calculate the additional amount taxpayers are paying and can create material for the secondary added amount.
Provident Fund Tax:
In the previous ITR filing in India, the additional amount that crosses the exemplary limit for the Provident Fund was excused by the income office. But with the new change made in the ITR forms 2022-2023, a new section has been added that will contain the details of the crossing of the exempt limit from the decided Provident Fund interest. The amount of the interest for the Provident Fund that has been decided to fall under the exempt limit is the amount crossing Rs. 2.5 lakhs. It is also possible that the amount of PF will also be crossly tallied with the total income amount paid by the taxpayer as income tax.
These are the five basic changes done in the ITR Forms for the ITR Filing in India. Check them out correctly and fill out your forms perfectly.
